European markets opened lower on Monday, alongside US Futures and despite Asian shares closing in the green at the end of a volatile trading session overnight.
Investors are struggling to digest the latest major developments registered in China after this morning’s poor economic data offset last week’s market optimism that had been fuelled by hopes of easing virus restrictions from Beijing.
However, the short-term bullish sentiment remains alive following last Friday’s US job report, and most benchmarks have not only held their gains but also keep flirting with immediate resistance levels.
That said, investors are bracing for another volatile week punctuated by several speeches from Fed officials today, the US Mid-term election tomorrow as well the highly awaited US CPI print on Thursday.
Meanwhile, a stronger US dollar combined with drops in bond and oil markets usually doesn’t provide a good set-up for stocks, increasing the risk of a market correction today.
Pierre Veyret– Technical analyst, ActivTrades
Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.